Bruce Berkowitz's Bogus Bombast | David Stockman

``... now comes the patented crony capitalist rush. The worthless Freddie and Fannie preferreds have lately erupted from $0.25 per share to $12, meaning that some speculators have already garnered a paper return of 48X. And why did this revival miracle transpire? Quite simply because Berkowitz's Fairholme Capital and his posse of punters---John Paulson, Perry Capital and Pershing Square, among others--have taken turns bidding up the paper. Meanwhile, their deplorable plan to do the American people a favor and swap these bogus securities for those of a new tax-payer underwritten, mortgage guarantee stamping machine, has but one objective--that is, to put a statutory floor under the current $12 per share price and enable them to dicker with Capitol Hill staffs for an ultimate take-out at par($25) under the guise of "privatization". ''